E-mini Dow Jones Industrial Average (YM) Futures Analysis – July 12, 2018 ForecastBased on the early price action, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the Fibonacci level at 24868. The minor trend is up. A trade through 24611 will change the minor trend to down. This will also shift momentum to the downside.
September E-mini Dow Jones Industrial Average futures are trading higher shortly after the cash market opening, but giving back some of its earlier gains. Sellers came in as the market approached this week’s high at 24937.
Daily Technical Analysis
The main trend is down according to the daily swing chart, however, momentum is trending higher. A trade through 24937 will indicate the upside momentum is getting stronger.
The minor trend is up. A trade through 24611 will change the minor trend to down. This will also shift momentum to the downside.
The short-term range is 24937 to 24611. Its 50% level or pivot is 24774. This price is controlling the short-term direction of the Dow.
The main range is 25418 to 23978. Its retracement zone at 24698 to 24868 is currently being tested. This zone is controlling the near-term direction of the Dow. The short-term pivot falls inside this range.
On the downside, support is the retracement zone at 24459 to 24233. This zone is controlling the longer-term direction.
Daily Technical Forecast
Based on the early price action, the direction of the September E-mini Dow Jones Industrial Average futures contract is likely to be determined by trader reaction to the Fibonacci level at 24868.
A sustained move over 24868 will indicate the presence of buyers. If this move generates enough upside momentum then look for the rally to extend into 24937. Taking out this minor top could drive the Dow into a downtrending Gann angle at 25066. This angle is likely to act like resistance on the first test then a trigger point for a potential breakout if the buying volume continues to strengthen.
A sustained move under 24868 will signal the presence of sellers. This could lead to a retest of the short-term pivot at 24774, followed by a support cluster at 24714 to 24698. This area provided support earlier today.
If 24698 fails as support, we could see the selling extend into 24611 then 24554. The Dow has to hold 24554 or momentum will shift to the downside and selling pressure could increase.